Sri Lanka rupee at new low, bond yields fall

Monday April 6, 2020 20:22:48

ECONOMYNEXT – Sri Lanka bond yields fell Monday and the while the rupee continued to slide in the one week forward market dealers said, with unprecedented volumes of money being ‘helicopter dropped’ into the credit system while the people are struggling to contain the spread of Coronavirus.

The rupee had closed around 199.75/199.90 to the US dollar in the one week forward market dealers said with deals done above 199.50 to the US dollar.

On Friday the rupee had traded at over 196 to the US dollar in the one week market, while one year deals were quoted around 200 rupees.

The rupee had come under pressure after unprecedented liquidity injections were made by the Central Bank despite operating a soft-peg with little credibility.